Gold Co. Unveils Robust PEA for Massive Brazil Gold Project

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

GoldMining Inc. (GOLD:TSX; GLDG:NYSE.American) announced the results of a preliminary economic assessment (PEA) for its São Jorge Project, situated in Pará State, Brazil, according to a June 11 release.

The base case scenario outlined in the PEA demonstrates robust economics, featuring an after-tax net present value (NPV5%) of US$532 million and an after-tax internal rate of return (IRR) of 42.4%, based on a gold price of US$3,500 per ounce, the release said. The project is expected to achieve payback within 2.8 years from the start of production.

Additionally, the project shows significant leverage to gold prices. At current spot prices of US$4,400 per ounce, the after-tax NPV5% escalates to US$836.8 million, with an IRR of 58.6% and an even shorter initial payback period of 2.4 years.

"The São Jorge PEA marks a significant milestone in the advancement of our corporate strategy," Chief Executive Officer Alastair Still said. "By combining a manageable US$202 million initial capital investment with a robust US$532 million base case NPV5%, we have outlined a highly efficient, construction-track asset on a regional-scale property that retains significant exploration potential for additional resource growth."

Still continued, "More than just a standalone project, the PEA highlights that São Jorge has the potential for resilient margins and rapid payback potential to become a cornerstone self-funding asset for us. With robust economics, we look forward to rapidly advancing and de-risking the Project with permitting and pre-feasibility studies to unlock further value across our gold-focused multi-million-ounce Americas portfolio."

The São Jorge Project boasts high capital efficiency with an initial capital estimate of US$202 million, which includes a 25% contingency, the company said. This positions the project with an attractive base case NPV5% to an initial capital ratio of 2.6x. The project benefits from its strategic location, which is adjacent to existing infrastructure such as power lines, paved highways, and is near a skilled workforce, all of which contribute to the relatively low capital requirement.

GoldMining said its strong financial position is underscored by its balance sheet, which includes approximately US$183 million in cash and publicly traded securities. This financial backing is crucial as the company plans to advance the São Jorge Project through its next development phases.

The PEA also forecasts that the São Jorge Project will be a significant generator of internal free cash flow. It anticipates a stable gold production profile averaging about 51,250 ounces annually over a 10.6-year mine life, with peak production reaching 57,200 ounces per year during the second to fourth years. Furthermore, the project is expected to maintain a resilient cost profile with a projected life of mine All-In Sustaining Cost (AISC) of US$1,464 per ounce, ensuring robust estimated margins throughout its operational life.

More on the São Jorge Project

The São Jorge Project is strategically located in the southeastern part of Pará State, Brazil, near significant infrastructure, including the regional highway BR-163, GoldMining said. The current mineral resource estimate forms the basis for the PEA, which anticipates an average mining rate of 27,000 tonnes per day over a 10.6-year mine life. The planned operations include extensive on-site development such as mining facilities, process facilities, and necessary infrastructure.

In terms of production, the PEA estimates that the highest metal production will occur in the first five years, averaging 53.4 thousand ounces of gold annually, with a life-of-mine average annual production of 51.2 thousand ounces. Sustaining capital expenditures over the life of the mine are projected at about US$53 million, and closure costs are estimated at US$12 million.

The São Jorge gold deposit is characterized as a granite-hosted, intrusion-related gold mineral system, similar to nearby significant gold projects, the company said. Over the past two years, exploration activities by the company have successfully identified several new exploration targets within a large mineral system that shows potential for further resource growth.

The company said it continues to prepare for the next stages of development, including further drilling and resource evaluation, to solidify São Jorge's position in its portfolio.

Analyst Maintains Buy Rating

According to an updated research note by Red Cloud Analyst Ron Stewart on June 12, the company's portfolio includes seven wholly-owned resource projects and a 74.2% equity stake in US GoldMining Inc (USGO:NASDAQ), with the combined assets estimated to contain about 30 million ounces (Moz) of gold equivalent. Despite São Jorge's relatively modest size, this PEA positions it prominently within GoldMining's strategy to enhance the value of its high-quality asset portfolio.

'We believe São Jorge can be advanced to construction over a 3.5-year period and model first production early in 2032," Stewart wrote. "The company intends to initiate pre-feasibility studies immediately to further de-risk the project."

Stewart continued, "Our valuation for São Jorge is based on a long-term gold price of US$3,000/oz. We apply a CAD:US exchange rate of 0.72. We model a 5,500 tpd (tonnes per day) operation in line with the PEA and assume the initial US$205 million capex (RCS estimate) to be financed by 70% debt and 30% equity. We calculate São Jorge’s NPV5% at US$287 million. The difference is explained by our lower gold price assumption, in addition to the time value discount. Using the PEA price with no time delay, our NPV increases to ~US$500 million, in line with the PEA."

Stewart maintained a Buy rating on the stock and raised its target price to CA$3.90 per share. The net asset value is calculated at CA$2,817, or CA$10.98 per share, applying a 0.35x multiple to account for risks and uncertainties.

Looking ahead, GMI anticipates several catalysts that could further enhance the project's value, including ongoing exploration results from São Jorge and Yarumalito, updates from US GoldMining, and continuous reviews of its asset portfolio. These developments are expected to solidify São Jorge's position as a cornerstone project within the company's broader strategy.

According to the website StockAnalysis, H.C. Wainwright Analyst Heiko Ihle also has a Buy rating on the stock with a CA$3.75 target price, and Joseph Reagor of Roth MKM also rates it a Buy with CA$3.50 target price.

The Catalyst: Will Gold's Bull Market Continue?

In 2025, gold prices reached unprecedented heights multiple times, but the trend has shifted to greater volatility since the end of that year, reported Aly J. Yale for CBS News MoneyWatch on June 11.

Although gold set a new record in January, the prices for the rest of the year fluctuated significantly, ranging from US$4,300 to US$5,500 per ounce. Several factors have contributed to this instability. The ongoing war in Iran has led to rising gas prices, which in turn have diverted potential investment funds from American consumers. Additionally, persistently high interest rates have attracted some investors towards products offering better returns, Yale wrote. Inflation has also been a contributing factor, reaching its highest level in over three years, as per the latest data.

Despite the reduced purchasing power for Americans due to inflation, gold continues to be seen as a valuable asset for preserving wealth, especially as the value of the U.S. dollar declines. Hiren Chandaria, managing director at Monetary Metals, noted, "Gold has preserved purchasing power over very long periods of time. It has long been viewed as a hedge against inflation." The ongoing high inflation raises questions about whether it will drive gold prices higher.

Experts believe that if the U.S. inflation rate remains elevated, it is likely to sustain or even increase gold prices. According to the report, Chandaria explained that in an inflationary environment, investors often seek assets that maintain value outside the banking system and fiat currencies, which boosts demand for gold. This demand comes particularly from long-term savers and investors looking to diversify away from financial assets that might be affected by higher rates, weaker currencies, or declining real returns.

This increased demand is expected to push gold prices higher if it continues throughout the year. According to the CBS piece, Thomas Winmill, a portfolio manager at Midas Funds, predicts, "We expect gold to finish the 2026 year up about 10% from here, so in the US$5,000 per ounce range." This projection underscores the potential for gold to remain a strong investment in the face of ongoing economic uncertainties.

According to A.G. Thorson writing for FX Empire on June 8, gold had closed below its 200-day moving average and erased all of its gains for 2026. The Gold Cycle Indicator fell to 71, its lowest reading since September 2023.

"We are now at a point in the cycle where prices could drop a bit further, but that outcome is not guaranteed," Thorson wrote.

"From a longer-term perspective, I believe this move below the 200-day moving average will ultimately be viewed as an attractive entry opportunity," Thorson continued. "In 2006, gold traded below its 200-day moving average for just over a month before resuming its uptrend and rallying more than 220% over the following five years. If a similar advance were to occur from current levels, gold could approach US$14,000 by 2031."

Ownership and Share Structure¹

About 5% of the company is owned by insiders and management, about 13% by institutions, and the rest is retail.

Its market cap is US$202.65 million with 214 million shares outstanding. It trades in a 52-week range of US$0.72 and US$2.26.